The partnership sets out a $15 million investment and provides the mortgage broking group with 7.6 per cent shareholding in Volt Corporation Limited.
“This alliance allows AFG Securities to harness Volt’s nimble banking solutions to deliver market leading innovation and faster decisioning to our brokers and customers, accelerating the ‘time to yes’ for AFG Securities customers,” AFG chief executive, David Bailey, said.
“The strategic alliance will deliver value to both companies as we combine Volt’s Banking as a Service platform with AFG’s broker technology and significant distribution footprint to deliver competitive products and streamlined digital solutions for brokers and their customers.”
The alliance includes a white-label AFG Home Loans Volt-funded digital mortgage product and access to Volt’s PFM technology, while Volt’s digital banking deposit products will also be made available to AFG broker customers.
“Volt is thrilled to partner with AFG to bring our digital mortgage offering to the market at scale,” Volt founder and CEO, Steve Weston, added.
“AFG are pioneers of the mortgage broking industry and touch one in every 11 home loans written in Australia. Their endorsement of Volt’s digital offering through this partnership and equity investment is a landmark moment for our company.
“Volt has distinguished itself by pursuing a banking as a service model, and the partnership with AFG is testament to demand for integrated and white label banking to improve customer relationships.
“The management of financial services is no longer the domain of a handful of large institutions. Volt wants to facilitate a future where a range of businesses, large and small, can deepen their customer relationships by supporting financial journeys.”
The alliance coincides with the appointment of former HSBC chair Graham Bradley as chair of the Volt board.
“I am excited by the opportunities that lie ahead for Volt and am delighted to join the team that will shape the company’s future strategic direction,” Mr Bradley said.
“The Volt team has successfully navigated the COVID disruptions of 2020 with their Banking as a Service strategy intact.
“With the new strategic partnership with AFG and additional capital funding, Volt is well-positioned to scale up quickly to provide highly-efficient and competitive financial services to the Australian market.”
How long til vertical integration and commissions in that industry get scrutinised